By Mike Zaura | February 24, 2022
In conversations with manufacturing clients, we repeatedly hear about three main issues:
- Supply Chain
- Commodity Pricing
These issues have been present for a while and we expect them to continue into this year. However, there are solutions that could assist manufacturers with these challenges.
Issue 1: Labor
Many manufacturers mention that they would love to run an additional shift or two, but cannot find workers to fill those roles. With the demand for products increasing in many industries, manufacturers are struggling to find workers to meet the production demands. They simply cannot fill the hours. Once the issue of labor is solved, manufacturers are running into the next issue, the supply chain.
Issue 2: Supply Chain
The supply chain encompasses everything from finding and obtaining raw materials, distributing the products to market, and everything in between. In addition to creating these products, there is also more focus on how and where they were made. In addition, many manufacturers are being asked to look at not only their own sustainability practices but also the sustainability practices of their suppliers. Sustainability departments are asking for operations to be greener and to find a way to offset natural gas and electric usage. In manufacturing, accountability for emissions is becoming a greater challenge at every level of the supply chain.
Issue 3: Commodity Pricing
The final issue facing manufacturers is rising commodity prices. Recently, commodity prices have been on an upward rollercoaster. Certain products like wood, plastics, and freight seem to be increasing monthly or even weekly.
- Lock into an agreement for natural gas and electric. If energy costs skyrocket, the length of your agreement will not be affected.
- Purchase Renewable Energy Credits (REC’s) or use Carbon Offsets to help meet sustainability goals.
- REC’s can serve as offsets for your electric usage.
- Carbon offsets can be used to make natural gas more sustainable.
In short, these solutions are less expensive than installing solar or wind turbines at a facility or on a property.
Do you have questions or want advice? Feel free to reach out to one of our advisors!